During the past few years, those who own and operate nursing homes have generated statewide media coverage in seeking the legislative endorsement of tort reform. Prompted by revenue-slashing increases in their insurance premiums, the corporations that run for-profit facilities have sought to convince the public that Florida's nursing homes will shut down unless there is new legislation to limit the number of lawsuits. Essentially, the industry points its finger at those victims of nursing home abuse who seek to enforce their rights. As Paul Harvey says: "Now, you will hear the REST of the story".

In general, nursing home companies across America have recently increased profits for their shareholders. According to a recent study conducted by U.S. News & World Report, on average, nursing home operators have increased revenue, and are now taking in 20-30% profit margins. This is largely due to the billions, yes, billions of dollars that federal and state financing agencies have provided to nursing homes across the country since 2001.

For the few that may have had profit decline, risky insurance investment and poor facility management are to blame. First, insurers have instituted across-the-board increases in premiums. The reason for the premium increase is that insurers have lost large amounts of money that they recklessly gambled away in the overvalued stock market of the 1990s. This insurance crisis is not limited to nursing homes. It touches every type of insurance for every Floridian. One only need look at his or her current automobile, property, or health insurance premiums to see how the insurance industry is trying to recover its losses from consumers.

Second, a number of nursing homes no longer receive significant government subsidies, like Medicare. A major reason for this lost revenue stream is that some facilities are falling below the minimum quality of care standards that the federal government requires each patient receive. To a lesser degree, the Medicare money is forfeited due to fraudulent claims submissions by nursing home financial administrators.

Overall, claims against nursing homes have significantly decreased in light of recent legislation limiting available remedies to victims of abuse. Costs for nursing care have gone up not because more lawsuits have been filed, but simply because of lower reimbursement rates that nursing homes have been receiving from private health insurance carriers.